Country guide

Company Formation in Saudi Arabia for Foreign Investors

As a foreign investor, you can establish and fully own your company in Saudi Arabia in most service activities. The usual route has three stages: investment registration with the Ministry of Investment, then articles of association and commercial registration through the Ministry of Commerce, followed by operating registrations with the Zakat, Tax and Customs Authority, Social Insurance, Chamber of Commerce and municipality. Our Riyadh office team coordinates the agreed scope and keeps you informed of the relevant steps. Through Qattan office services, service-company formation starts from SAR 21,000 (excluding VAT and government fees; the final price depends on your country and documents).

Office Services

A service followed up by our office team

The service scope and price are confirmed in a written quote after reviewing the activity, country, and documents. VAT applies where applicable and government fees are separate.

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Who can own?

  • The new Investment Law took effect on 12 February 2025. Investment registration replaced the former investment licence, and one registration can cover more than one activity.
  • Service activities have no statutory minimum capital in the Investor Guide.
  • For trading activity (buying and selling) with 100% foreign ownership, Investor Guide edition 13 (2026) requires capital of at least SAR 30 million with further conditions; or SAR 26,666,667 with a Saudi partner holding at least 25%.
  • If you hold a Saudi work residence permit and do not have a company in your home country, ordinary registration requires the foreign participating company’s commercial registration and financial statements. Premium Residency holders are exempt from these documents under the Investor Guide. The entrepreneurship route requires a letter from an accredited incubator or accelerator.

Common entities

  • Limited liability company
  • Simplified joint stock company
  • Foreign company branch
  • Professional company for licensed professions

Steps

  1. Check eligibility: activity under ISIC4, investor country, and whether you have an existing company or Premium Residency.
  2. Prepare, legalise and translate the documents.
  3. Submit the investment registration to the Ministry of Investment. The Investor Guide gives an estimated processing time of 10 working days from a complete application. Fees are set by investor undertaking on approval and paid within 15 working days of notification.
  4. Reserve the trade name and complete the articles of association and commercial registration through the Ministry of Commerce.
  5. After registration, register with the Zakat, Tax and Customs Authority, Social Insurance, Chamber of Commerce and municipality where there is a premises; then open the bank account.

Documents and legalisation

  • For ordinary registration, the Investor Guide lists a copy of the participating foreign company’s commercial registration, its financial statements for the most recent fiscal year, and legalisation.
  • Where the issuing country is an Apostille Convention member, the Apostille is usually sufficient.
  • Where it is not a member, the document follows the usual legalisation chain: local authorities, the issuing country’s foreign ministry, then the Saudi embassy.
  • Certified Arabic translation is usually required for foreign documents.

Typical timing

  • Investment registration is estimated at 10 working days after the file is complete, according to the Investor Guide.
  • The full time to commercial registration and follow-on registrations depends on document readiness and the legalisation chain in your country; we set out the estimate in your written quote.

After formation

  • The new Commercial Registration system replaced renewal with annual confirmation of data. The confirmation fee is SAR 1,200 for an LLC according to the Ministry of Commerce.
  • VAT registration is mandatory when taxable supplies exceed SAR 375,000 per year.
  • A foreign partner’s share of profit is subject to 20% income tax.

Frequently asked questions

Can I own my Saudi company 100%?

Yes, in most service activities after investment registration. Trading with full foreign ownership has a SAR 30 million minimum capital under the Investor Guide.

I live in Saudi Arabia. Do I need a company in my home country?

For ordinary registration, yes, because the foreign company’s commercial registration and financial statements are required. A Premium Residency holder is exempt from these documents. We review your position and explain the suitable route.

How much does formation cost?

Through Qattan office services, the fee for setting up a Saudi service company starts from SAR 21,000 excluding VAT and government fees. Government fees are listed separately in the written quote. Commercial activity formation starts from SAR 35,000 after reviewing the activity and scope.

How long does the Ministry of Investment take?

The Investor Guide estimates processing at 10 working days after the file is complete.

Request a written quote

Send your activity and target country, and we will set out the steps and documents in the written quote for your case.

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Official sources

Last updated: October 2026

Information is general guidance based on the official sources listed and is confirmed in the written quote for your case.

Information on this site is general guidance based on published official sources and does not replace your written quote. Government fees and final decisions rest with the authorities.